On October 10, 2023, E2open Parent Holdings Inc (ETWO, Financial) announced its financial results for the fiscal second quarter ended August 31, 2023. The company reported GAAP subscription revenue of $134.7 million, marking a 2.4% increase from the year-ago period. The company's year-to-date GAAP operating cash flow stood at $51.3 million.
Financial Performance
ETWO's total GAAP revenue for the second quarter of 2024 was $158.5 million, a decrease of 1.4% from the year-ago comparable period. The company's GAAP gross profit for the same period was $79.2 million, a 2.2% increase from the year-ago period. The company's net loss for the second quarter of 2024 was $38.6 million, compared to a net loss of $409.6 million from the year-ago period.
Company's Outlook
Despite the positive results, the company's growth rate remained below its potential. "While we delivered subscription revenue near the high end of our guidance in the second quarter and maintained strong adjusted EBITDA margins, our growth rate remained below our potential," said Marje Armstrong, chief financial officer of E2open. The company is repositioning for organic growth and expects pressures on its growth rate to persist for the remainder of fiscal year 2024.
Business Highlights
ETWO held its annual customer and partner conference, e2open Connect 2023, in Orlando, Florida, with attendance up 30% year over year. The company also announced strategic innovation initiatives in Connected Planning and Connected Logistics technology solutions. ETWO was recognized as a Leader by Nucleus Research in the 2023 Control Tower Technology Value Matrix for the ninth consecutive year.
Financial Outlook for Fiscal Year 2024
ETWO expects its GAAP subscription revenue for fiscal 2024 to be in the range of $530 million to $538 million, reflecting a 0.2% organic growth rate at the mid-point. The company's total GAAP revenue for fiscal 2024 is expected to be in the range of $625 million to $635 million, reflecting a 3.4% year over year decrease at the mid-point.
